News

Last Year Olainfarm Sets a New Profit Record of 15.3 Million Euros

on April 29, 2016

Audited consolidated profit and loss account of JSC Olainfarm for 2015 shows that consolidated net profit was 15.3 million euros. This represents an increase by 25% compared to the net profit of 2014 and by 8% compared to the net profit of 2012, when the previous profit record was set. Parent company’s net profit in 2015 was 14.6 million euros, which represents an increase by 28% compared to the net profit of 2014.

Sales of the Group in 2015 reached 97.4 million euros, which represents an increase by 4% compared to 2014, when sales of the Group were 93.7 million euros and is the highest sales number ever reached by the group so far. Sales of the Parent company in 2015 were 84.7 million euros, which also represents an increase by 4% compared to 2014, when Parent company made sales of 81.6 million euros.

The biggest consolidated sales increase (by 107%) was achieved in The Netherlands, where products for WHO’s Anti-Tuberculosis program are shipped. Sales in Tajikistan increased by 39%, sales to Latvia by 11%. The major sales markets of the Group in 2015 were Russia, Latvia, Ukraine, Belarus and The Netherlands

The biggest Parent company’s sales increase in 2015 was achieved in The Netherlands where sales grew by 107%. Sales to Turkmenistan grew by 46%, but sales to Tajikistan grew by 39%. Significant sales growth has also been achieved in Latvia where sales of the Parent company increased by 25%. Major sales markets of Parent company of JSC Olainfarm in 2015 were Russia, Latvia, Ukraine Belarus and The Netherlands.

During the reporting period, registration processes have been launched in Bosnia and Herzegovina, Vietnam, Myanmar; GMP audit by Turkish pharmaceutical authorities has been passed, and bioavailability tests for Turkish registration completed, allowing the Parent company to proceed with registration in Turkey.

New forms have been developed for “Gripoflex 325” (with reduced content of paracetamol), “ACC 200mg” powder, and lactose free “Memantine” tablets of 10mg and 20mg. The work continues at development of new combined prolonged activity form of nitrofurantoin. Two new food supplements have been developed and registered in Baltic countries with urological and hepatological application. Food supplement “Jogurt Babydrops” has been registered in the Baltics and is planned for further registration in 14 countries.

Annual meeting of shareholders of JSC Olainfarm held on June 11, 2015 approved operating plan of the Group for 2015. According to it, sales of the Group in 2015 are planned to be 100 million euros, but the net profit will reach 15 million euros. According to this audited report for 2015, during this period 97.4% of annual sales target and 101.9% of annual profit target is met. The same meeting approved targets for Parent company’s operations, stating that Parent company’s sales target is 87 million euros, but the profit target is 14 million euros. According to these accounts, Parent company met 97.4% of sales target but exceeded its profit target by 4%.

Statement of Financial Position

Group

Parent company

31.12.2015

31.12.2014

31.12.2015

31.12.2014

EUR ‘000

EUR ‘000

EUR ‘000

EUR ‘000

ASSETS

NON-CURRENT ASSETS

Intangible assets

20 591

18 848

2 210

2 109

Property, plant and equipment

35 579

34 674

34 047

33 252

Financial assets

4 910

4 234

22 382

19 848

TOTAL NON-CURRENT ASSETS

61 080

57 756

58 639

55 209

CURRENT ASSETS

Inventories

20 990

18 693

18 979

17 172

Receivables

30 487

28 219

31 178

29 077

Cash

5 574

2 055

5 015

1 745

TOTAL CURRENT ASSETS

57 051

48 967

55 172

47 994

TOTAL ASSETS

118 131

106 723

113 811

103 203

EQUITY AND LIABILITIES

EQUITY

Share capital

19 719

20 041

19 719

20 041

Share premium

2 504

2 504

2 504

2 504

Reserves

322

–

322

–

Retained earnings

65 773

50 492

65 921

51 355

Non-controlling interests

30

8

–

–

TOTAL EQUITY

88 348

73 045

88 466

73 900

LIABILITIES

Non-current liabilities

Borrowings

8 560

10 387

8 051

10 361

Deferred corporate income tax

1 947

1 640

635

438

Deferred income

2 656

2 099

2 604

2 032

Total Non-Current Liabilities

13 163

14 126

11 290

12 831

Current liabilities

Borrowings

4 258

6 906

3 593

5 700

Trade payables and other liabilities

11 562

12 227

9 677

10 370

Deferred income

800

419

785

402

Total Current Liabilities

16 620

19 552

14 055

16 472

TOTAL LIABILITIES

29 783

33 678

25 345

29 303

TOTAL EQUITY AND LIABILITIES

118 131

106 723

113 811

103 203

Statement of comprehensive income

Group

Parent company

2015

2014

2015

2014

EUR ‘000

EUR ‘000

EUR ‘000

EUR ‘000

Net revenue

97 392

93 654

84 746

81 625

Cost of goods sold

(32 315)

(29 683)

(25 979)

(22 791)

Gross Profit

65 077

63 971

58 767

58 834

Selling expense

(28 202)

(28 356)

(23 742)

(24 063)

Administrative expense

(18 965)

(16 198)

(18 118)

(15 286)

Other operating income

2 715

1 788

2 487

1 274

Other operating expense

(1 957)

(2 974)

(1 864)

(3 047)

Share of profit of an associate

118

153

–

–

Income from investments in subsidiaries

–

–

300

–

Financial income

262

187

261

183

Financial expense

(1 404)

(4 728)

(1 352)

(4 691)

Profit Before Tax

17 644

13 843

16 739

13 204

Corporate income tax

(2 110)

(2 266)

(1 976)

(2 247)

Deferred corporate income tax

(245)

657

(197)

467

PROFIT FOR THE REPORTING PERIOD

15 289

12 234

14 566

11 424

Other comprehensive income for the reporting period

–

–

–

–

Total comprehensive income for the reporting period

15 289

12 234

14 566

11 424

Total comprehensive income attributable to:

The equity holders of the Parent Company

15 281

12 237

14 566

11 424

Non-controlling interests

8

(3)

–

–

Basic and diluted earnings per share, EUR

1.08

0.87

1.03

0.81

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 40 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.